The Mail on Sunday says the Nerazzurri have proposed an initial loan with a guaranteed £12million for Jovetic.
City would prefer cash up front for the striker whom they bought for £22m from Fiorentina two years ago. Inter also want Yaya Toure and know that bid would take up the bulk of their budget this summer.
Jovetic is keen to return to Italy. The 25-year-old has been limited to 39 first-team appearances for City.
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